AUD/JPY Price Analysis: Bullish pennant looms, targets 2021 yearly high around 86.00
- The Australian dollar trims some of Monday’s gains, down 0.19%.
- AUD/JPY would be significantly influenced by market sentiment and headlines around the Russia-Ukraine crisis.
- AUD/JPY Technical Outlook: The AUD/JPY is upward biased, but DMAs closing to the spot price might change the bias to “neutral-upwards.”
After rallying to 83.86 fresh weekly high, the Australian Dollar retreats blamed a market mood shift. At the time of writing, the AUD/JPY is trading at 83.29, down 0.19%.
The market sentiment is downbeat. Russia-Ukraine crisis does not appear to abate. Instead, tensions arise, as a Ukraine intelligence official reported 300 Belarussian tanks near the border of Ukraine-Belarus. Financial markets were caught off guard, sending oil prices to new YTD highs above the $100 mark, while global yields plummeted, led by US Treasuries.
The AUD/JPY immediately dropped from 83.52 to 83.14 (40-pip) due to that news.
AUD/JPY Price Forecast: Technical outlook
The AUD/JPY trades below the weekly high, reached on March 1 83.86, though is above February 7 high at 83.33, previous resistance-turned-support. Furthermore, an ascending triangle has formed, usually a bullish pattern, but it would need an upward break above the top-trendline around 84.00, once broken, would target October 21, 2021, high at 86.25.
That said, AUD/JPY’s daily moving averages (DMAs) remain below the spot price. However, it’s worth noting the closeness to the exchange rate, keeping the pair’s bias as “neutral-upwards” instead of just upwards.
The AUD/JPY’s first resistance would be March 1 daily high at 83.86. Once cleared, the next resistance would be January 5 high at 84.30, followed by 85.00, and October 21, 2021, high at 86.25.
Author
Christian Borjon Valencia
FXStreet
Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.
